ACCA F6 Ch 2

Question 1

What are examples of Exempt income?

Answer 1

• NS&I
• Gaming, lottery & premium bonds income
• NISAs

Question 2

What are the Personal Age Allowances?

Answer 2

• Born between April 5th 1938 - April 6th 1948: <= £10,500
• Born before April 6th 1938: <= £10,660
• Reduced by 50% of each £1 over £27,000

Question 3

What are the Higher and Additional rates?

Answer 3

• Higher = >£31, 865
• Additional = >£150,000

Question 4

What are the reliefs against total income?

Answer 4

Relief on interest paid on:

1. Employees

• Purchased PPE for use in employment
• Purchased shares in an employee-controlled company by a full-time employee

2. Partners

• Partner contributes to shares or a loan in/for the partnership
• Partner buys PPE for partnership

Question 5

When is charitable giving relief avaliable?

Answer 5

• Gift Aid
• Payroll giving under the Payroll Deduction Scheme
• Charitable donations given by self-employed (limited)

Question 6

Amount of Child benefit charged?

Answer 6

• Income between £50k-60k: 1% for every £100
• Income over £60k: total child benefit charged

Question 7

You are liable to UK tax if…?

Answer 7

• dont meet an automatic non-UK residence test;
• meet one of the automatic UK residence test; or
• meet 1+ of the sufficient ties tests

Question 8

Automatic non-UK residence test?

Answer 8

Been in UK for less than:

• 16 days
• 46 days, and not been a UK resident for the 3 prior tax years
• 91 dyas, and works full-time overseas

Question 9

Automatic UK residence tests?

Answer 9

If:

• >=183 days in UK
• only home is in UK; or
• work full-time in UK

Question 10

Sufficient ties tests?

Answer 10

• Close Family in UK
• Accomodation made use of
• Substansive Work
• Days in UK: >90 days in either or both of prior 2 tax years
• Country: spends most time in UK